NasdaqCM:CHFS

Stock Analysis Report

Executive Summary

CHF Solutions, Inc., a medical device company, focuses on the provision of solutions for patients suffering from fluid overload.

Rewards

Revenue is forecast to grow 48.41% per year

Earnings have grown 3.4% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap ($4M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has CHF Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CHFS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.0%

CHFS

-0.06%

US Medical Equipment

0.6%

US Market


1 Year Return

-92.1%

CHFS

25.1%

US Medical Equipment

20.8%

US Market

Return vs Industry: CHFS underperformed the US Medical Equipment industry which returned 25.1% over the past year.

Return vs Market: CHFS underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

CHFSIndustryMarket
7 Day8.0%-0.06%0.6%
30 Day25.7%3.7%2.5%
90 Day-69.5%4.2%4.9%
1 Year-92.1%-92.1%26.2%25.1%23.5%20.8%
3 Year-100.0%-100.0%91.7%86.1%46.5%37.0%
5 Year-100.0%-100.0%117.6%93.8%64.6%46.5%

Price Volatility Vs. Market

How volatile is CHF Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CHF Solutions undervalued compared to its fair value and its price relative to the market?

0.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CHFS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CHFS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CHFS is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: CHFS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CHFS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CHFS is good value based on its PB Ratio (0.5x) compared to the US Medical Equipment industry average (4.2x).


Next Steps

Future Growth

How is CHF Solutions forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

32.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHFS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CHFS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CHFS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CHFS's revenue (48.4% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: CHFS's revenue (48.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CHFS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CHF Solutions performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHFS is currently unprofitable.

Growing Profit Margin: CHFS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CHFS is unprofitable, but has reduced losses over the past 5 years at a rate of 3.4% per year.

Accelerating Growth: Unable to compare CHFS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CHFS is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.3%).


Return on Equity

High ROE: CHFS has a negative Return on Equity (-413.14%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CHF Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: CHFS's short term assets ($6.1M) exceed its short term liabilities ($2.9M).

Long Term Liabilities: CHFS's short term assets ($6.1M) exceed its long term liabilities ($309.0K).


Debt to Equity History and Analysis

Debt Level: CHFS is debt free.

Reducing Debt: CHFS had no debt 5 years ago.


Balance Sheet

Inventory Level: CHFS has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CHFS's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CHFS has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CHFS has less than a year of cash runway if free cash flow continues to reduce at historical rates of -0.1% each year


Next Steps

Dividend

What is CHF Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CHFS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CHFS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CHFS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CHFS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CHFS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of CHF Solutions's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

John Erb (70yo)

4.1yrs

Tenure

US$2,639,169

Compensation

Mr. John L. Erb has been the Chief Executive Officer and President of CHF Solutions, Inc. (also known as Sunshine Heart Inc.) since November 2015. Mr. Erb has been a Director of Electromed, Inc. since Augu ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.64M) is above average for companies of similar size in the US market ($USD526.35K).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: CHFS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

6.8yrs

Average Tenure

67yo

Average Age

Experienced Board: CHFS's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$49,99612 Mar 19
John Erb
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares9,523
Max PriceUS$5.25

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 411.8%.


Management Team

  • John Erb (70yo)

    Chairman

    • Tenure: 4.1yrs
    • Compensation: US$2.64m
  • Nestor Jaramillo (62yo)

    Chief Commercial Officer

    • Tenure: 0.6yrs
  • Carrie Powers (44yo)

    Senior Vice President of Commercial Operations

    • Tenure: 1.2yrs
  • David Lerner

    Sr. Vice President of Corporate Development & Technology

    • Tenure: 0.8yrs
  • Claudia Drayton (51yo)

    Chief Financial Officer

    • Tenure: 4.9yrs
    • Compensation: US$977.67k
  • Thomas Lynch (52yo)

    VP, General Counsel

    • Tenure: 1.3yrs
  • Sandra Eayrs

    Senior Vice President of Human Resources

    • Tenure: 4.9yrs
  • Laurent Duhoux

    Vice President of International Business Development

    • Tenure: 1.3yrs
  • Vitaliy Epshteyn (41yo)

    Sr. Vice President of Operations & Engineering

    • Tenure: 1.9yrs

Board Members

  • John Erb (70yo)

    Chairman

    • Tenure: 4.1yrs
    • Compensation: US$2.64m
  • Greg Waller (69yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$246.04k
  • Warren Watson (67yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$226.16k
  • Jon Salveson (54yo)

    Non Executive Director

    • Tenure: 6.8yrs
    • Compensation: US$226.16k
  • Steve Brandt (63yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$186.42k
  • Maria Costanzo

    Director

    • Tenure: 0.3yrs

Company Information

CHF Solutions, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CHF Solutions, Inc.
  • Ticker: CHFS
  • Exchange: NasdaqCM
  • Founded: 1999
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$3.715m
  • Shares outstanding: 4.67m
  • Website: https://www.chf-solutions.com

Number of Employees


Location

  • CHF Solutions, Inc.
  • 12988 Valley View Road
  • Eden Prairie
  • Minnesota
  • 55344
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHFSNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDFeb 2012
22S3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2012

Biography

CHF Solutions, Inc., a medical device company, focuses on the provision of solutions for patients suffering from fluid overload. The company’s commercial product is the Aquadex FlexFlow system, which is in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 00:44
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.